A RMB foreign exchange swap refers to an agreement between a bank and a company to conduct two currency exchanges of the same amount but in opposite directions at different exchange rates on two different settlement dates, one in the near term and the other in the future. Depending on the direction of settlement, it is divided into "near-end sell/buy" foreign exchange swaps and "near-end buy/sell" foreign exchange swaps.
RMB foreign exchange swaps can lock in the exchange rates for foreign currency receipts and payments in both the near and far terms at once, facilitating flexible adjustment of RMB and foreign currency funds for companies, meeting their liquidity management needs, and are suitable for enterprises with future foreign currency receipts and payments or cross-currency business investment needs that create currency mismatches.